1999 (6) TMI 8 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee in a gift-tax case related to the reconstitution of a firm. The Tribunal held that the reduction in profit-sharing ratio and the admission of new partners were not gifts but transactions with valid consideration. The court cited a previous case to support this decision. The questions referred by the Revenue were answered in favor of the assessee.